A password does not protect their systems from physical theft as the thief may not find out about the password until the item has been stolen.

Usually physical barriers are used to stop physical theft. These are sometimes referred to as 'lines of defence'. Some of these might be

Offices with a perimeter fence.
Locked doors into the building. Security systems between floors and offices.
Equipment is locked away at night or secured to the desk.
Equipment is tagged such that an alarm sounds if it is removed from a floor or out of the building. (The same sort of devices stores use).